Business Policy
Exam Review
Course Introduction
Business Policy examines the formulation, implementation, and evaluation of strategies that guide organizations toward achieving their long-term objectives. The course emphasizes the integration of knowledge from various functional areas such as marketing, finance, operations, and human resources to analyze complex business situations. Through case studies, simulations, and strategic analysis, students learn to assess external environments, identify competitive advantages, and make decisions that affect organizational direction and performance. The course prepares students to think critically, solve problems, and lead organizations in an ever-evolving business landscape.
Recommended Textbook
Strategic Management Concepts 3rd Edition by Frank Rothaermel
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12 Chapters
1319 Verified Questions
1319 Flashcards
Source URL: https://quizplus.com/study-set/2868
Page 2
Chapter 1: What Is Strategy
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/57133
Sample Questions
Q1) The first step in stakeholder impact analysis involves
A) formulating a stakeholder strategy to balance the different needs of various stakeholders.
B) identifying the opportunities and threats the stakeholders present.
C) describing the economic, legal, ethical, and philanthropic responsibilities of the firm toward the society.
D) identifying the stakeholders that currently have, or potentially can have, a material effect on a company.
Answer: D
Q2) In the United States,which of the following was born out of dissatisfaction with the capitalist system in 2011?
A) the Sarbanes-Oxley Act
B) the Occupy movement
C) the Tea Party movement
D) the Taft-Hartley Act
Answer: B
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Chapter 2: Strategic Leadership: Managing the Strategy Process
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/57132
Sample Questions
Q1) A customer-oriented vision statement focuses employees to think about how best to A) make a product easier to use.
B) increase their efficiency for consumers.
C) improve a popular product.
D) solve a problem for a consumer.
Answer: D
Q2) The critics of top-down strategic planning and scenario planning argue that A) the strategies developed through these approaches are primarily based on an inspirational vision and not on hard data.
B) these approaches do not believe that we can predict the future from the past.
C) the development of strategies through these approaches is highly dependent on experience of front-line employees.
D) these approaches do not allow for the necessary strategic thinking.
Answer: D
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Chapter 3: External Analysis: Industry Structure,
Competitive Forces, and Strategic Groups
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/57131
Sample Questions
Q1) _____ is best described as cooperation by competitors to achieve a strategic objective.
A) Co-opetition
B) Conglomeration
C) Amalgamation
D) Liquidation
Answer: A
Q2) An industry has many firms that compete in it.While products between competitors tend to be similar,they are by no means identical.As a consequence,managers selling a product with unique features tend to have some ability to raise prices.This type of industry is an example of
A) oligopoly.
B) monopoly.
C) perfect competition.
D) monopolistic competition.
Answer: D
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Page 5
Chapter 4: Internal Analysis: Resources, Capabilities, and Core Competencies
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/57130
Sample Questions
Q1) In the context of SWOT analysis,which of the following best exemplifies a firm's external opportunity?
A) an increase in its financial resources
B) an increase in its brand equity
C) an increase in its customers' disposable income
D) an increase in its employee productivity
Q2) A firm's resources and capabilities are costly to imitate.This is because rival companies do not clearly understand the relationship between the resources and capabilities controlled by the firm.In this case,the firm's competitive advantage is protected against imitation by
A) path dependence.
B) dependence complexity.
C) causal ambiguity.
D) social complexity.
Q3) Dynamic capabilities are essential for moving beyond a(n)_____ advantage.
A) long-lived
B) short-lived
C) competitive
D) inconsistent
Page 6
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Chapter 5: Competitive Advantage, Firm Performance, and Business Models
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/57129
Sample Questions
Q1) Which of the following is a disadvantage of measuring firm performance through total return to shareholders and firm market capitalization?
A) Market volatility makes it difficult to assess firm performance through these measures, particularly in the short-term.
B) These tools fail to indicate how the stock market views all available public information about a firm's expected future performance.
C) These tools measure competitive advantage in absolute terms rather than relative terms.
D) Only the book value of the share prices is taken into account when applying these measures, and not the market value.
Q2) _____ are best described as the value of the best forgone alternative use of the resources employed.
A) Variable costs
B) Opportunity costs
C) Social costs
D) Switching costs
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Page 7
Chapter 6: Business Strategy: Differentiation, Cost
Leadership, and Blue Oceans
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/57128
Sample Questions
Q1) Home Smart Inc.is a chain of supermarkets that sells its products at higher prices than its competitors.Yet,the supermarket chain has a large customer base due to its wide product portfolio and superior customer service.Which of the following generic business strategies has Home Smart adopted in this scenario?
A) cost-leadership
B) differentiation
C) market penetration
D) product diversification
Q2) The primary goal of a firm pursuing a blue ocean strategy should be to
A) create the highest perceived value in its respective industry.
B) build a reputation of being the lowest-cost producer in its chosen industry.
C) offer a differentiated product or service at a low cost.
D) achieve a less steeper learning curve.
Q3) Which of the following best describes a strategic trade-off?
A) the tension between innovation and keeping manufacturing costs down
B) the tension between maintaining both high-quality products and service
C) the tension between value creation and the pressure to keep cost in check
D) the tension between raising prices and keeping a loyal clientele
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Chapter 7: Business Strategy: Innovation and Entrepreneurship
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/57127
Sample Questions
Q1) As a research scholar,Ricardo had built a helicam as part of his project.The helicam could capture aerial images.Realizing the potential use of this product in movie production and military and rescue operations,he started a new venture where he could customize these helicams to fit the specific needs of the buyers and sell them.Ricardo can be best described as a(n)
A) entrepreneur.
B) category captain.
C) franchisor.
D) early adopter.
Q2) The increasing availability of external options to commercialize ideas that were previously shelved is one of the factors that led to the shift from the A) maturity stage to the shakeout stage.
B) shakeout stage to the maturity stage.
C) open innovation to closed innovation.
D) closed innovation to open innovation.
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Chapter 8: Corporate Strategy: Vertical Integration and Diversification
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/57126
Sample Questions
Q1) A firm follows a(n)_____ when less than 70 percent of its revenues come from a single business and there are few,if any,linkages among its businesses.
A) related-constrained strategy
B) unrelated diversification strategy
C) differentiation strategy
D) dominant-business strategy
Q2) When a firm is said to be pursuing a geographic diversification strategy,it means that the firm will
A) introduce different products and services in an existing single market.
B) sell its products in several different regional, national, and international markets.
C) operate from multiple headquarters across the globe.
D) depend solely on its in-house facilities for all its production purposes.
Q3) A(n)_____ is best used to depict the transformation of raw materials into finished goods and services along distinct vertical stages.
A) encrypt
B) chain of command
C) industry value chain
D) scatter chart
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Chapter 9: Corporate Strategy: Strategic Alliances, Mergers and Acquisitions
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/57125
Sample Questions
Q1) Which of the following is a disadvantage of equity alliances?
A) They are reflective of weaker ties between firms.
B) They do not permit the exchange of explicit knowledge.
C) They can bring about a lack of commitment.
D) They can entail significant investments.
Q2) Which of the following statements is true of joint ventures?
A) They enable the exchange of both tacit and explicit knowledge.
B) They reduce the possibilities of trust and commitment.
C) They are characterized by single reporting lines.
D) They cannot entail long negotiations.
Q3) FR Pharmaceuticals Inc.,BioCure Pharma Inc.,and Regime Pharma Inc.are three rival firms who have set up an alliance to conduct research and find a cure for cancer.They have made almost equal contributions to the research,and they also share their expertise with each other.However,the three firms will continue to behave as competitors in markets for other drugs and vaccines.What is this arrangement best referred to as?
A) takeover
B) buyout
C) co-opetition
D) acquisition
Page 11
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Chapter 10: Global Strategy: Competing Around the World
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/57124
Sample Questions
Q1) Stop n' Save Inc.,a supermarket chain,is implementing a multidomestic strategy.SunLife Inc.,a company that manufactures solar panels for commercial and domestic purposes,is pursuing a global-standardization strategy.How will the two companies most likely differ from each other?
A) Stop n' Save Inc. will focus more on cost-reduction than SunLife Inc.
B) Stop n' Save Inc. will have its business functions spread across the world; SunLife Inc.'s business functions will be highly centralized.
C) Unlike SunLife Inc., Stop n' Save Inc. will be able to pursue a differentiation strategy at the business level.
D) Unlike SunLife Inc., Stop n' Save Inc. will be able to reap significant economies of scale and location economies.
Q2) Some of the best engineering and car companies are in Germany.Thus,it can be concluded that Germany has a _____ in the automobile industry.
A) capital gain
B) trade surplus
C) national competitive advantage
D) liability of foreignness
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Page 12
Chapter 11: Organizational Design: Structure, Culture, and Control
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/57123
Sample Questions
Q1) Why does strategy implementation often require changes within an organization?
A) Strategy implementation is less important than strategy formulation.
B) Strategy implementation transforms strategy into actions and business models.
C) Strategy always follows structure.
D) Strategy implementation does not affect resource allocation and power distribution within an organization.
Q2) DigiGames Inc.established itself as the foremost producer of computer games.However,as the market for these games moved from laptop computers to cell phones based on cloud applications,DigiGames failed to adapt its games enough to this new environment.As result,the firm soon lost its competitive advantage.Which of the following best describes this scenario?
A) movement from core rigidity to core competency
B) movement from core rigidity to founder imprinting
C) movement from founder imprinting to core competency
D) movement from core competency to core rigidity
Q3) Which of the following types of groups is most susceptible to groupthink?
A) a diverse group
B) a cohesive group
C) a heterogeneous group
D) a decentralized group
Page 13
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Chapter 12: Corporate Governance and Business Ethics
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/57122
Sample Questions
Q1) In principal-agent relationships,_____ describes the difficulty of principals to ascertain whether agents have really put forth their best efforts.
A) the agency problem
B) adverse selection
C) on-the-job consumption
D) moral hazard
Q2) Why do shareholders of public companies need to appoint a board of directors to represent their interests?
A) because of the separation of ownership and control
B) because employees of a company cannot be shareholders
C) because the board of directors itself is made up of shareholders
D) because they want tighter control over day-to-day operations of a company
Q3) Which of the following statements best supports the separation of ownership and control in publicly traded companies?
A) Shareholders are liable only for the capital they invest and not for their personal wealth.
B) Shareholders can freely trade the company stocks.
C) Shareholders own stocks but do not run the company.
D) Managers control the company but may also have stock ownership.
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Page 14